Ukraine reportedly plans to legalize cryptocurrencies in early 2025, according to Daniil Getmantsev, head of the tax committee of the Verkhovna Rada, but the legislation will not include tax breaks.
The draft bill, currently under review, is expected to be finalized by early 2025 in coordination with the National Bank of Ukraine (NBU) and the International Monetary Fund (IMF). Its primary aim is to regulate digital assets while ensuring fiscal oversight.
Despite earlier speculation around possible tax incentives, standard taxation rules similar to securities trading will be applied under the legalized framework — meaning all profits from crypto transactions will be taxed upon conversion to fiat currencies.
Legalizing cryptocurrencies in Ukraine would follow a global pattern and set the country up to become a potential hub for regulated digital asset trading in Eastern Europe.
Legislation developments
A dedicated working group is finalizing the draft legislation to legalize crypto operations, which, according to Getmantsev, should be ready for the first parliamentary reading in the first quarter of 2025.
The legislation will regulate digital asset transactions while focusing on financial stability and Anti-Money Laundering (AML) measures to create a transparent and legally secure framework for businesses and investors working with digital assets.
During the ongoing war between Ukraine and Russia, legalizing cryptocurrencies could offer Ukrainians a regulated means to access financial support, protect their assets from inflation, and facilitate cross-border transactions without relying on traditional banking systems, which may face disruptions during wartime. Cryptocurrencies have already been used for humanitarian aid, donations and financial stability during crises.
The planned legislation also coincides with a rise in decentralized finance (DeFi) in Eastern Europe, which received over $499 billion worth of crypto between July 2023 and June 2024, according to Chainalysis.
No tax incentives
No tax breaks will be included in Ukraine’s crypto policy, contrary to industry expectations and global leaders offering crypto tax incentives.
Getmantsev explained that crypto profits will have capital gains tax applied to the assets when converted into fiat currencies, adding that the committee is “cautious about tax incentives as they can be exploited for tax evasion in traditional markets.”
This approach by the committee aims to limit tax avoidance risks while ensuring that revenue from crypto-related financial activities flows toward the use of the country and its government.
Morocco to legalize all cryptocurrencies
While Ukraine moves to regulate digital assets, other nations are making similar strides. Despite banning digital assets in 2017, Morocco reportedly plans to legalize all cryptocurrencies as the country’s central bank, Bank Al-Maghrib, prepares a draft law for crypto regulation.
The governor of the Moroccan central bank, Abdellatif Jouahri, revealed that the “draft law” is currently “in the adoption process,” announced in tandem with an uptick in Bitcoin (BTC) interest as it almost hit $100,000 in late November.
Bank Al-Maghrib has also been exploring the possibility of establishing a central bank digital currency to see how it “could contribute to achieving certain public policy objectives.”
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